The most common reason to be turned down for a current account application by a bank is bad credit. Managing without a bank account can be difficult and inconvenient. A Card One Banking UK current account for bad credit can allow one to redeem banking history whilst managing finances through a managed account combined with a prepaid MasterCard.
The current account available from Card One Banking is open to anyone regardless of credit history. The bank accepts those with CCJ’s, the unemployed, and bankrupts, but does not offer cheques, direct debits or overdrafts. Customers are able to open an account which is operated online, without any credit checks. There are various fees to consider in return for the advantages of operating a current bank account with bad credit.
The account works by the customer opening a billing account into which funds can be deposited through a variety of means. Working with an account manager the customer arranges to make payments by standing order to cover necessary outgoings. The funds deposited into the billing account are held by the National Westminster Bank. Customers may then transfer their remaining balance to a prepaid MasterCard that functions as a debit card, with the funds held by the Newcastle Building Society.
There is no fee to open the account but a monthly management fee of £12.50 is charged. Additional fees applied to the account include £1 for domestic ATM withdrawals; £0.15 for balance enquiries by text; £5 for the card to be issued which is valid for 36 months; £3.50 to replace the card if lost, stolen or expired; £1 to make deposits into the account through the Post Office.
The card can be loaded directly from the billing account by transfer without charge. Cash and cheques can be paid into the account by bank giro credit at Nat West or through the Post Office. Direct payments can be made for salaries.
There are no charges for returned payments and the bank sends text alerts if a payment is due by standing order and there are insufficient funds in the account to meet it. There is no overdraft facility and thus no overdraft fees. Customers may be liable for the first £50 if the card is used by a third party whilst lost or stolen. There is a maximum permitted balance of £25,000 for the current account and £5,000 for the prepaid card. Unfortunately there is no interest payable on balances.
It is definitely worthwhile considering opening a current account through Card One Banking if other attempts to open a current account have been declined. Managing an account well will reflect on future current account applications once credit has improved, and provides a means of operating a bank account in the interim period.